II. Question Two ( 30 marks) Using the notation: overstated (+), understated (-) or no effect (0), and the amount involved to indicate the effects of the following transactions on each of the accounts listed. Each of the following transactions are independent (i.e., the first transaction does not affect the second, etc.). Assume a company has completed its accounting cycle and prepared all the financial statements. Each firm's year-end date is December 31. Afterwards, the company discovers that it has overlooked a transaction. By what amounts are the financial statements wrong before the corrections are made for the forgotten transaction? Ignore any effect of taxes. Example: A firm neglected to record any journal entries to recognize inventory purchased on account of $ 10,000. Cost of goods sold was calculated correctly for the period. Current assets: Current liabilities: -10,000 Long-term assets: - 10,000 Long-term liabilities: Capital stock: Retained earnings: Expenses/Losses: 0 Additional paid-in capital: 0 Revenue/Gains: 0 Income: 00000 a. A firm neglected to record any journal entries related to both the declaration and the payment of $5,000 in dividends. Both the declaration and payment occurred during the same accounting period. Current assets: Current liabilities: Capital stock: Retained earnings: Expenses/Losses: Long-term assets: Long-term liabilities: Additional paid-in capital: Revenue/Gains: Income: b. A firm neglected to record any journal entries to recognize the receipt of $8,250cash from a customer. The cash receipt was in settlement of an account receivable of the same amount. Current assets: Current liabilities: Capital stock: Retained earnings: Expenses/Losses: Long-term assets: Long-term liabilities: Additional paid-in capital: Revenue/Gains: Income